Posted on: January 7, 2025, 04:12h.
Last updated on: January 7, 2025, 04:12h.
Crypto.com expands its selection of sports event contracts, offering clients more opportunities for betting beyond the Super Bowl.
The brokerage firm has introduced contracts for the NFL conference championship games, bowl games, and the college football playoffs (CFP). This week features two semifinal games in the CFP, with the championship game scheduled for Monday, Jan. 20 in Atlanta.
The NFL playoffs kick off on Saturday, with the AFC and NFC conference championship games set for Sunday, Jan. 26. Crypto.com has not mentioned plans to add more NFL event contracts during the playoffs. These contracts differ from traditional sports wagers, making them attractive to financial services firms like Crypto.com.
Event contracts are a type of financial derivative that enables traders to speculate on specific outcomes. They are structured around ‘Yes’ or ‘No’ results and fluctuate based on the projected outcome. Event contracts pay out when the held position matches the correct outcome of the event, otherwise expiring worthless.
Crypto.com’s Impact on Event Contracts
Crypto.com’s expansion of sports event contracts comes after the company announced its entry into this form of wagering two weeks ago, starting with a contract for the Super Bowl.
The company calls this sports event trading the first of its kind, offered by Crypto.com | Derivatives North America, regulated by the Commodities and Futures Trading Commission (CFTC).
Crypto.com is the first brokerage to allow event contracts to be bought with digital currencies, with around 350 listed on the platform. Winnings are paid out in US dollars.
While football is highly popular for betting in the US, Crypto.com has not mentioned plans regarding event contracts post-football season.
Popularity Surge of Event Contracts
Platforms like Kalshi and Polymarket experienced increased activity during the 2024 presidential election season, illustrating the rising popularity of event contracts among investors and bettors.
These assets are akin to traditional derivatives with fluctuating prices, prolonging engagement and potential gains. For instance, a Super Bowl contract on Crypto.com may decrease in value today but rise in the coming days. This differs from traditional sports wagers, which are resolved post-event, lacking the same ongoing engagement.
Financial firms like Interactive Brokers and Robinhood are also expanding event contract offerings, with some eyeing a wider entry into sports betting.